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Thursday, February 23, 2012

How many Chinese workers does it take to produce what one Americna worker produces? Answer: 9-10.


Anonymous said...

Isn't this largely due to the fact that China produces such a large amount of intermediate and labor-intense goods in addition to providing (relatively) smaller amounts of services?

Kyle Peterson said...

I would think it would be more due to a lack of capital in china. With the cheap price of labor, it might be cheaper to pay 9 workers than buy and run machinery. I would go on to hypothesize that the American worker is on average much higher educated/trained allowing for an efficient utilization of capital.